11/01/2008 [ tribune.net.ph ]
President Arroyo yesterday signed Republic Act 9510 enacting into law the Credit Information System Act (CISA) that will greatly improve the availability of credit especially to small and medium scale enterprises (SMEs).
The President gave her commitment that the program on low-cost housing will be facilitated with the intent of this law to cut processing time on loans and to reduce cost of lending.
“Congress has given our people an early Christmas gift through this CISA law. We look forward to Congress adding even more gifts to better protect our people. We cannot waste time on political intrigues and grandstanding. Remaining reforms await our actions,” Mrs. Arroyo said after signing her CISA law.
She said that a credible and comprehensive credit information system run by the Credit Information Corp. will cut credit processing time and lower transaction costs and will reduce the risk of default with better credit information.
Among the salient features of the CISA law, according to the President, will be the reduction of credit premiums charged by lenders. It will also increase lending volumes and will help expand the reach of credit to small and medium enterprises.
With the signing of CISA Law, the Credit Information Corp. will be established with the mandate to receive and consolidate basic credit data ant to act as a central registry of credit information providing access to reliable standardized information on borrowers.
The Securities and Exchange Commission (SEC) is the lead government agency in implementing and enforcing the provisions of the CISA Law.
The Credit Information Corp. will be staffed with 15-man board with the government representing the majority. The board chairman and its members will be appointed by Mrs. Arroyo.
The industry of qualified investors, associations of banks, and quasi-banks and other credit-related associations will have board representatives in the Credit Information Corp.
The CISA Law has provision that will broaden and improve access to credit especially by small borrowers by reducing reliance on collaterals to secure credit facilities.
A salient feature also of the CISA Law, states that “it is not meant to be an exception to the Bank Secrecy Law because confidential information under the Law Of Secrecy of Bank Deposits, Foreign Currency Deposit Act, General Banking Law and the Anti-Money Laundering Law are expressly excluded from the information to be shared in the system.”
The SEC in coordination with relevant government agencies and existing industry stakeholders, as the CISA Law provides, shall issue the implementing rules and regulations, which shall be reviewed, revised, and approved by the oversight committee to ensure consistency and compliance with the provisions of the R.A. 9510 otherwise known as The CISA Law. Riza Recio
